2016WINTER NEWSLETTER

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For the EICC, the past year has been one of tremendous progress, change, and preparation for the future.

As the EICC strives to realize its mission and vision, and tackles the evolving corporate social responsibility challenges facing our industry, it cannot achieve success without the active involvement of its membership. We greatly appreciate the hard work, dedication and support of our member companies. Through participation in working groups, taskforces, audits, trainings, collaboration, reporting, conferences, outreach meetings and other efforts throughout the year, our members are increasing the social and environmental responsibility of the global electronics supply chain.

The EICC continues to grow, in membership, capabilities and influence. The following is a brief review of EICC accomplishments in 2015. As we begin 2016, we look forward to building on this success, to the benefit of everyone involved in and affected by the electronics industry.

Thank you and best wishes for a wonderful new year!

The EICC Staff

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MELISSA PEWETTMeetings and Member Services Manager

ROB LEDERERExecutive Director

TEAMMEET THE

JARRETT BENSDirector of Communications

CARLOS BUSQUETSDirector of Public Policy

HILLARY AMSTERCFSI Audit Program Manager

KENNETH ANDERSONDirector of Information Technology

MICHAEL ROHWERSenior Program Director

TARA HOLEMANVice President of Program Management and Quality

CHRISTINE BRISCOEDirector, Member Services and Training

LEAH BUTLERCFSI Program Director

DEBORAH ALBERSVice President of Social and Environmental Sustainability

CHEE KEONG LAISenior Director, Risk Assessments and Audits

ROSS LANDISDatabase Project Manager

STEVE MALONEYChief Financial Officer

CHUCK WILLIAMSAccounting Manager

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INITIATIVES AND WORKING GROUPS

EICC AREAS OF WORK

TASK FORCES AND SPECIAL PROJECTS

Assessment & Compliance Conflict Minerals

Environmental Sustainability Learning & Capability Building

Vulnerable WorkersWorking Hours

Trafficked and Forced LaborChemical Management

Stakeholder EngagementUN Guiding Principles

Indirect Spend

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CODE OF CONDUCT 5.0 AND UPDATES TO A1 AND A7

OUTREACH MEETINGS AROUND THE WORLD

The hard work of amending the EICC Code of Conduct in 2014 paid off this year with the unveiling of EICC’s Code of Conduct 5.0, which took effect on April 1 for auditees. EICC staff traveled to outreach meetings in California, Belgium, China, Malaysia and Mexico to explain the new Code and the supporting implementation guidance. New provisions strengthened the requirements for protecting young workers, ensuring non-discrimination and freedom of association, and managing resource use, waste management, and health & safety communication.

In addition to the rollout of the new Code, the membership, recognizing the need to go further in combatting forced labor, approved additional strengthening of the “Freely Chosen Employment” section (A1). Additional guidance for A7 was also created to strengthen provisions on freedom of association. The new information for A1 and A7 will take effect with 2016’s Code of Conduct 5.1.

For more information, contact:

EICC Outreach Meetings take place around the world throughout the year – facilitating an exchange of perspectives, ideas and knowledge amongmember companies and their suppliers, government representatives,civil society organizations and other stakeholders. In 2015 the EICCgathered more than 2,000 attendees, hosting events in Mexico, Malaysia,Korea, China, Belgium and the U.S.

Tara Holeman

EICC STRATEGIC PLAN, MEMBERSHIP CATEGORIES AND CRITERIA APPROVED

One of the biggest successes of 2015 was the approval of the Strategic Plan and Membership Categories. This was a two-year project that will conclude with the expansion of membership categories from two to four, effective Jan. 1, 2017. This is a significant milestone in the history of EICC. Members will be able to move between levels of membership and voluntarily demonstrate leadership through increased transparency. Full Members will have membership criteria verified. In addition, there is now a way for organizations new to CSR to join the community of member companies as an observer until they are ready to progress through the CSR maturity curve.

Members were engaged throughout the process, including participation in a taskforce, webinars, in-person sessions at the annual conference, 30-day comment periods, Basecamp discussions, survey feedback, and one-on-one calls with staff.

For more information, contact:

Christine Briscoe

EICC explains Code changes to event attendees in Shenzhen, China

Audience questions during an Outreach Meeting in Kuala Lumpur, Malaysia

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Responsible Electronics 2015

EICC welcomed more than 300 attendees to our annual conference in San Jose, California this September. Many thanks to all of you who participated and helped make it a great event. We are already looking forward to Responsible Electronics 2016!

Responsible Electronics 2015 featured expert speakers and panelists from government, industry and NGOs on topics ranging from future trends and challenges in the supply chain to emerging regulations to creative approaches regarding risk assessment to human rights and environmental issues. Attendees stayed busy between sessions by talking with exhibitors, networking during coffee breaks and receptions, and visiting our Education Hub to learn about EICC tools and other resources.

EICC members can access presentations from the conference, including the members-only day, here on SharePoint. Non-members can view the general session presentations here on SlideShare and everyone can view photos from the conference here on Flickr.

RESPONSIBLE ELECTRONICS 2015 - OUR LARGESTCONFERENCE EVER

Responsible Electronics 2015

EICC LEARNING ACADEMY CONTINUES TO GROWOver 20 new courses, webinars and other resources, and 28 additional translations of existing courses were added to the Learning Academy in 2015. The EICC Learning Academy now contains approximately 50 modules in English, Chinese and other languages. Modules are interactive and feature on-screen and end-of-course quizzes and certificates upon successful completion. Trainings are aligned with EICC Code of Conduct elements. Additional EICC resources, such as EICC-specific courses, webinars, toolkits and working group materials are also available.

Functionality added in 2015 enables your Academy Team Leaders to easily upload their own materials for their teams, so the Academy could serve as your organization’s learning management system. Team Leaders can add new users, assign courses, track learning and run reports. EICC can help with bulk upload of larger staff or supplier lists and can help you define and roll out individual learning programs.

For a complete list of courses and translations available, view the recently updated Course Descriptions Document here on SharePoint.

For more information, contact:

Christine Briscoe

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The EICC launched its CSR Boot Camp series, and CSR 101 class specifically, right after our 2015 annual conference. Twenty representatives from 13 organizations, including three non-member companies, attended the full-day session to learn more about corporate social responsibility (CSR). Attendees learned about the history and evolution of CSR, completed a CSR self-assessment and other activities, and heard from not only seasoned practitioner facilitators, but also three expert panelists (and EICC Board members) during an afternoon panel. Opportunities for networking and questions were provided, and participants left the session with some suggested next steps mapped out for themselves and their organizations, and many additional business cards. This was the first in a series and more Boot Camp and EICC Code trainings are being added to the 2016 calendar – keep an eye on the Bulletin newsletter and the Events section of our website. If you would like to schedule a CSR Boot Camp or Code training at your location, please let us know.

For more information, contact:

The EICC is in the process of creating a way for member facilities and suppliers to become a “Workplace of Choice.” This program is an educational and capacity-building initiative that will link key stakeholders (industry leaders, factory management, civil society organizations, and workers) to help secure safe and fair labor migration practices and is being piloted in Malaysia.

Key components of the program include:• Worker surveys to capture the

understanding of worker profiles,demographics, journey of labormigration, pre-employmentexpectations, and currentperceptions of the workplace

• Worker-managementcommunication systems tofacilitate effective dialoguesbetween employers and workers

• Worker training to provideeducation on available resourcesand guidance on access to theseresources

• A worker helpline to address andsupport foreign migrant workergrievances

For more information, contact:

Boot Camp participants learn from panel of CSR experts

Workplace of Choice program rollout in Kuala Lumpur, Malaysia

EICC CSR BOOT CAMP (CSR 101)

INTRODUCING THE WORKPLACE OF CHOICE PROGRAM

Deborah Albers Christine Briscoe

Boot Camp participants engaged in interactive exercises

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The EICC and Stanford University’s Rural Education Action Program (REAP) concluded Phase 2 of the credentialing pilot program for vocational education and training (VET) in China, building on the work of EICC members Apple and Dell, along with REAP, in Phase 1. The program aims to improve the situation of student workers in VET schools, a key source of labor for the electronics industry in China, by increasing monitoring and accountability. In this pilot, schools became credentialed by meeting a strict set of criteria designed by REAP and approved by the EICC. The credentialing program had direct, statistically significant impacts on student educational outcomes:

• Improved vocational skills by 55 percent

• Improved math skills by 34 percent• Reduced school dropout by 15

percent

The EICC-REAP report can be downloaded here from the EICC website and a video about the project can be viewed here. The results of the credentialing program and a proposal for its next phase will go to the EICC board of directors for review in January 2016.

For more information, contact:

PHASE 2 OF STUDENT WORKER PROJECT COMPLETE

Deborah Albers

Carlos Busquets

Representatives from the European Commission and USTR on EICC panel

PUBLIC POLICY CAPACITY ADDEDAs governments around the world are increasingly regulating CSR supply chain issues, the EICC created a public policy function to engage constructively and ensure that industry views, experience and practice were effectively represented. Not a lobbyist, but rather a hub for public-private collaboration around best practices derived from our wide range of tools, programs and initiatives, the EICC quickly entered a number of policy processes to raise awareness and ensure new regulations are implemented in an effective and efficient manner, with strong industry input.

Key highlights in 2015 include:

• Launch of an EICC Public Policy Advisory Group and strategy• Several events with U.S. and Malaysian governments on forced labor • Engagement with the U.S. government on Federal Acquisition

Regulation (FAR) to help shape implementation of new rules on human trafficking

• Discussions with the European Commission around proposed conflict minerals legislation – stressing the role of CFSI for downstream industry

• Led industry response on the UK Modern Slavery Act • Engagement with the Chinese government on emerging CSR Guidance • Recognition of the EICC as a leading industry body at several global

forums, including the UN Forum on Business and Human Rights, International Labour Organization (ILO) work on supply chains, and UN Global Compact Business and Sustainable Development Goals Forum

For more information, contact:

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Building on the EICC Stakeholder Advisory Group (SAG), which provided input into the latest version of our Code of Conduct, we increased engagement with stakeholders across many issue areas in 2015. These included:

INCREASED STAKEHOLDER ENGAGEMENT

• Helping industry address the “chemical challenge” by conducting a gap analysis with the EICC’s Code of Conduct and developing capacity-building trainings

• Working on corporate transparency regulations such as the UK Modern Slavery Act and the California Transparency in Supply Chains Act

• Engaging several NGOs on forced labor to highlight EICC practices to combat force labor in the supply chain

For more information, contact:

Carlos Busquets

Ken Anderson

NEW RISKASSESSMENT TOOLTo improve and simplify the overall risk assessment process for our members, the EICC partnered with Verisk-Maplecroft to create a new tool for supplier Risk Assessment Level 1 (RA1) analysis. This tool utilizes the vast knowledge base of Maplecroft’s inherit risk calculations, and integrates it with the five pillars of EICC’s Code of Conduct to produce a single RA1 score for each supplier. The scores are then color-coded to provide a quick “Red-Yellow-Green” view of a member’s suppliers. Other features include an interactive risk map that shows an overlay of a user-selected risk element on a global map, as well as an analytics page that displays average risk scores, location counts, pillar averages, and many other statistics. This is an exciting new tool, and we look forward to expanding its use and functionality in 2016.

For more information, contact:

EICC-ON ENHANCEMENTThis year the capabilities of EICC-ON have grown significantly to support the Validated Audit Process (VAP) more robustly. All EICC members and suppliers store their Self-Assessment Questionnaires in the system. This is the first year that all initial audit reports were uploaded directly into the system, a process that allows for subsequent generation of closure audit reports and re-scoring the VAP when a closure audit is completed. This enhanced audit storage increases sharing capability among customers. The visibility of Corrective Action Plans is another feature that has grown this year. EICC-ON now gives the staff more options for generating reports based on the data collected.

For more information, contact:

Ken Anderson

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This year, after an evaluation of how to support our growing audit program, the EICC decided to move to a new Audit Program Manager (APM) that would provide new data tools and enhanced customer service. This idea aligned closely with changes that the EICC had already put into place in April to help members and auditees obtain better service. Sumerra began operating in the APM role in September, participated in the EICC Auditor Summit in October to build working relationships with the audit firms, and completed the transition by December of 2015. We are grateful to Vectra for playing a pivotal role in guiding VAP to its current stage of development.

For more information, contact: In 2015 the Conflict-Free Sourcing Initiative (CFSI) improved the quality of the audit program by increasing staff, building and implementing new internal data and tracking systems, and re-orienting the Smelter Engagement Team into a more focused work group. CFSI enhanced its tools by launching an eLearning Academy, delivering smelter webinars and launching an online Smelter Database, improving the quality and ease of access of data provided to smelters, our members and external stakeholders.

We also continued to support emerging programs in the conflict minerals space by joining the Advisory Committee of BSP, supporting the CCCMC’s new due diligence guidelines, and engaging the ICGLR Audit Committee on core training topics and decision-making processes. The CFSI now has over 300 members that utilize and support the further development of our tools, resources, and programs, including the Conflict-Free Smelter Program (CFSP). Today, among the 320 currently identified 3TG smelters/refiners, 208 smelters are validated as having the systems and processes is place to support sourcing of conflict-free 3TG. An additional 44 smelters are in the process to become audited. Taken as a whole, 81% of identified smelters for all four metals are participating in the CFSP today.

For more information, contact:

The EICC opened a new office in Kuala Lumpur, Malaysia in 2015. The office is run by Chee Keong Lai, EICC’s Senior Director of Risk Assessments and Audits. The main focus of the office will be to coordinate the growing VAP program.

For more information, contact:

CONFLICT-FREE SOURCING INITIATIVE EXPANDS ITS REACH

NEW OFFICE IN MALAYSIA

Tara Holeman

Leah Butler

Chee Keong Lai

NEW AUDIT PROGRAM MANAGER: SUMERRA

CFSI annual meeting in San Jose, California

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We partnered with CDP to encourage electronics companies to disclose through CDP’s supply chain program, which is designed to guide companies to achieve their environmental potential. It was an opportunity for EICC members to pilot a Greenhouse Gas (GHG) initiative that can help them measure and look for ways to reduce emissions, while enabling the EICC to drive GHG reporting further down into the supply chain. What’s more, it was harmonized with the EICC-ON Environmental Reporting Module so that the data collected in either platform would be easily comparable.

More than 150 companies reported their GHG emissions for the very first time thanks to this EICC-CDP partnership. Altogether, we collected data from 462 companies to supplement the public reports available from over 1,600 companies in the electronics supply chain. That’s more than 2,000 total greenhouse gas emissions reports from which we plan to publish joint reports on industry trends in GHG reporting and help EICC members develop product supply chain GHG inventories.

For more information, contact:

TRACKING, REPORTING AND REDUCING GHG EMISSIONS

Michael Rohwer

Membership in the EICC continues to grow. In 2015 we grew by 15%, welcoming 19 new members and bringing the total EICC membership to 109.

See the full list of members:www.eiccoalition.org/about/members

MEMBERSHIPGROWS BY 15%

95

109

2014

2015

In 2015 the EICC enhanced its new member onboarding process, which consists of individual orientation calls with every new member company, to review background on EICC, member benefits and tools, and requirements. In some cases, individual calls were held before and after joining, and follow-up orientation calls with additional staff have also taken place. Some in-person meetings also occurred at company locations and at our annual conference.

In addition, a second annual new member breakfast was held the morning of our member meeting at our annual conference. It was a great chance for new members to meet one another and hear from staff, before attending the main meeting and conference.

IMPROVED ONBOARDING FOR NEW MEMBERS

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COMING IN

2016

SAVE THE DATE

Q1 2016 Q2 2016 Q3-4 2016

In addition to strategic programs, many tactical initiatives in 2016 will further support the mission and vision of the EICC. Some of these include:

• Increased engagement with governments and stakeholders on key issues

• Hosting a multi-industry event in Malaysia on forced labor• A Leadership Circle meeting of senior-level CSR executives to

address emerging issues for the industry and plan strategies for the future

• The development of four service industry Self-Assessment Questionnaires

• Continued enhancements to EICC-ON and its reporting capabilities

• Expansion of risk assessment tool use and functionality• Publishing reports on Fluorinated Greenhouse Gases (F-GHG),

findings from the EICC-CDP program, etc.• Additional Boot Camps and Code trainings, and EICC Factory

Lead certification• Establishment of forced labor tools geared to member

companies and employment agencies

Full Member Year-End 2015 Compliance Deadline is January 29

Multi-Industry Conference in Kuala Lumpur, Malaysia on forced labor

Outreach Meetings anticipated in Tokyo, Japan, Guadalajara, Mexico and Brussels, Belgium

Leadership Circle Event in Washington, D.C.

Responsible Electronics 2016

Conflict-Free Sourcing Initiative Annual Meeting

Membership renewal period begins in November

Outreach Meeting anticipated in China

More information about these events will appear in the EICC Bulletin newsletter and on the Events page of our website in 2016.